Synopsis
On February 28, the Indian stock market opened significantly lower, attributed to weak global cues. Major sectors such as auto and IT faced selling pressure, leading to caution among investors as foreign institutional investors continued to sell equities.Key Takeaways
- Sensex down by 840.82 points.
- Nifty dropped 254.15 points.
- Bearish market sentiment persists.
- Foreign institutional investors continue selling.
- Domestic institutional investors are active buyers.
Mumbai, Feb 28 (NationPress) The Indian benchmark indices commenced the trading session significantly lower on Friday due to weak global cues. Early trading witnessed selling pressure across the auto, IT, PSU bank, and metal sectors.
At approximately 9:34 am, the Sensex was down by 840.82 points, or 1.13 percent, standing at 73,771.61, while the Nifty dropped by 254.15 points, or 1.13 percent, to reach 22,290.90.
The Nifty Bank index fell by 439.75 points, or 0.90 percent, to 48,304.05. Additionally, the Nifty Midcap 100 index was recorded at 48,142, reflecting a decrease of 994.75 points, or 0.12 percent. The Nifty Smallcap 100 index stood at 14,836.35 after a decline of 320.25 points, or 2.11 percent.
Analysts have noted that the previous three trading sessions have been lackluster for the benchmark index, as evidenced by the small-bodied candlestick formations. The slight price fluctuations indicate an ongoing bearish sentiment, leading market participants to adopt a more cautious stance.
“Looking ahead, it is crucial to stay alert to global developments, which may serve as catalysts in determining the initial direction of domestic markets. Simultaneously, it is advisable to avoid making aggressive investments until market momentum resumes,” remarked Sameet Chavan, Head of Research, Technical and Derivatives at Angel One.
In the Sensex index, the most significant losses were experienced by Reliance, ITC, Sun Pharma, ICICI Bank, Hindustan Unilever Limited, Axis Bank, and Asian Paints.
In the previous trading session, the Dow Jones fell by 0.45 percent, closing at 43,239.50. The S&P 500 dropped by 1.59 percent to finish at 5,861.57, and the Nasdaq saw a decline of 2.78 percent, closing at 18,544.42.
Asian markets including Seoul, China, Japan, Bangkok, Jakarta, and Hong Kong were also trading in the red.
Foreign institutional investors (FIIs) continued their selling spree for the sixth consecutive day, offloading equities worth Rs 556.56 crore on February 27. Conversely, domestic institutional investors (DIIs) purchased equities worth Rs 1,727.11 crore on the same day.
